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10 points A company made an investment of AED 40,000 in a project for a period of 5 years, the project gives an annual income
10 points A company made an investment of AED 40,000 in a project for a period of 5 years, the project gives an annual income of AED 12,000. The yearly operating and maintenance cost is AED 3,500 and the salvage value for the project after 5 years in AED 20,500. There is a single extra cost at the end of two years of AED 10,000 for renovation of the project. Match the following questions with the closest correct answers from the given int. -6802 A B 0.52% 732.5 What is the present value using 7%? What is the present value using 8%? What is the internal rate of retum (IRR)? (interpolate the IRR linearly) If the company's minimum acceptable rate of return (MARR) is 76% should the company proceed with the project? 0.772% E Yes F 6802 7.52% G H. No
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